The role of a process agent
The Federal Motor Carrier Safety Administration (FMCSA) requires for-hire carriers, freight brokers, and freight forwarders to have process agents. Generally, agents are hired or retained by a regulated entity. The cost of obtaining an agent is relatively low because many in the motoring public do not know that they exist, as a result, they are rarely used.
What do process agents process?
The process agent functions as a conduit between the legal system and the motor carrier. This enables court actions to be served in the state in which the event occurred and eliminates the need to search for the location of a motor carrier domiciled in another state.
A process agent is the carrier’s “statutory agent.” They are in each state of operation and may receive notice of an action against the carrier. When the process agent receives notice, the carrier is considered notified.
As a convenience to those who need process agents, rather than finding one in every state, the FMCSA allows the use of a “blanket designation” to meet the requirement. A blanket process agent has relationships in all jurisdictions. The FMCSA offers a list of companies providing blanket designations.
The process agent is made known or “designated” on a form called the BOC-3.
The past predicts the future
Nearly a decade ago, the FMCSA published a final rule creating a Unified Registration System. Much of the rule was pulled back a few years later, before the related process agent provisions could be realized, although the rule did indicate changes to the process that the FMCSA would like to make. Currently, carriers need to make a designation in only the states in which they operate. The problem is that, for an interstate carrier that is free to travel in any state, the rule would have required the carrier to designate agents in all the lower 48 states. In addition, the rule would have required that private and exempt for-hire carriers name process agents.
Since much of the motoring public does not know that process agents exist, it is safe to assume there are some in your organization who do not know either. As a best practice, review who should receive notices from process agents, who your process agents are, and whether your designated agents are still active.